BTC blocks cannot handle millions of separate on-chain tran…

dsflaty ·

BTC blocks cannot handle millions of separate on-chain transactions daily because the base layer is limited to approximately 3 to 7 transactions per second, which translates to a theoretical maximum of roughly 400,000 to 867,000 transactions per day depending on transaction size.
Block Constraints: Each block is limited to roughly 1 MB of data (or up to 4 MB effective weight after SegWit) and is generated every 10 minutes on average.
Capacity Calculation: With an average transaction size of 250 bytes, a block can hold about 4,000 transactions, capping the daily on-chain throughput significantly below the millions required for mass global adoption.
Layer 2 Solutions: To achieve millions of transactions daily, Bitcoin relies on Layer 2 protocols like the Lightning Network, which bundle millions of off-chain transactions and settle them as a single transaction on the base blockchain.
While the total Bitcoin network (including off-chain layers) can theoretically handle billions of transactions, the on-chain base layer itself remains strictly limited to a small fraction of that volume.